)
Perth-based marine services group Bhagwan Marine (ASX: BWN) has posted record revenue and earnings for the December half-year after listing on the ASX in a $173 million public float last year.
Bhagwan Marine, a company founded by the Kannikoski family with a history dating back to 1985 when it began as a crayfishing venture, has doubled net profit after tax to $8.8 million as revenue rose 41 per cent to $154.1 million. The latest half-year profit compares with a $5.5 million NPAT in the FY24 full year.
Pro forma EBITDA for the half year surged 32 per cent to a record $27.3 million as the group capitalised on a strong performance from its core operations, with solid contributions from growth sectors such as oil and gas, offshore wind farms and defence.
Bhagwan Marine was officially founded in 2000 and listed on the ASX on 26 July 2024 after raising $80 million from its IPO.
The company has a fleet of 96 vessels, 26 of which are leased, that operate from leased port facilities, as well as nearshore, offshore and subsea locations nationally. The boats include dive support vessels, tugboats and barges.
"Our first-half results reflect the strength of Bhagwan’s operations and our ability to deliver outstanding service across a diverse and growing portfolio,” says Loui Kannikoski, the founder and managing director of Bhagwan Marine.
“A particular highlight was the timely commercial completion of the oil and gas decommissioning project in 2Q25. This project was delivered to a high standard and safely, with more than 850,000 offshore working hours completed without a single lost-time injury. Its success was reinforced by highly positive client feedback at close-out.”
Kannikoski says the company continues to expand into new growth sectors, “strengthening our offshore wind capabilities and positioning for increased defence, maintenance, and large vessel opportunities”.
“Innovation remains central to our strategy, and we are advancing our service offering with remotely operated and hybrid-powered technologies.”
Founded with a single vessel in Geraldton in 2000, Bhagwan Marine began by primarily servicing the oil and gas industry and grew over the next 20 years due to the expansion of liquified natural gas projects on the North-West Shelf.
In FY24, Bhagwan Marine was engaged to help decommission offshore infrastructure in the North West Shelf for a major oil and gas company.
The company diversified in 2015 by securing contracts from clients in industry sectors such as ports, resources, civil construction and defence.
Growth has been aided by acquisitions, with its most recent in 2016 when it bought Perth-based subsea engineering consultancy Delta Subsea, enhancing the group’s subsea engineering capabilities.
Bhagwan says the outlook for FY25 remains strong, with activity levels and demand for its marine solutions expected to be driven by work from energy companies in the Northern Territory and diversification opportunities within the subsea sector.
The company also is aiming to capitalise on expansion and diversification opportunities within the larger vessel market in northern Australia, and it is seeing a rise in enquiries for defence sector services at the Henderson Marine Precinct in Western Australia.
Bhagwan Marine shares, which were issued at 63c each, were trading at 61c at 3.39pm (AEDT), down 1.5c.
)
